High fuel costs hit consumer confidence

Consumer continued to dip for the third consecutive month as respondents expressed concern over stock investments and inflation, according to a survey released by the National Central University yesterday.

The monthly survey gauges the public's expectations on stock performance, household finances, durable goods, job opportunities, consumer price fluctuations and the economic outlook over the next six months.

With two sub-indices up and four down, the consumer price index (CCI) lost 0.6 percentage points from last month to reach 67.93, the university's Research Center for Taiwan Economic Development said in a report.

A CCI figure of less than 100 points indicates that the public is pessimistic about the outlook for the next six months, while a score of between 100 and 200 points demonstrates optimism, the center said.

Consumer for stock investments showed the biggest decline among the six indicators: it fell 3.1 percentage points to 67.4.

The figures for consumer price fluctuations and household finances dropped to the lowest levels in the survey's history, indicating the public's deepening anxiety over inflation, said report author Chu Yun-peng (朱雲鵬), who is also head of the research center.

The public's concern over prices was largely because of the high prices of crude oil and raw materials worldwide, which pushed fuel and utility rates higher in Taiwan.

Earlier month, both state-run Chinese Petroleum Corp (中油) and private Formosa Petrochemical Corp (台塑石化) hiked their wholesale gasoline prices for the third time this year. Last week, a Ministry of Economic Affairs committee approved an application by CPC to raise natural gas prices by 15 percent.

In contrast, the sub-index for purchases of durable goods climbed to its highest point at 117, the survey showed.